US prosecutors have escalated their investigation into India’s Adani Group, focusing on potential bribery and the conduct of billionaire founder Gautam Adani, according to sources familiar with the matter, as per a report by Bloomberg.
The investigation, led by the US Attorney’s Office for the Eastern District of New York and the Justice Department’s fraud unit in Washington, is examining whether an Adani entity or individuals linked to the company were involved in paying officials in India for favourable treatment on an energy project. The probe also includes the Indian renewable energy company Azure Power Global Ltd, as reported.
In a statement, the Adani Group asserted, ‘We are not aware of any investigation against our chairman.’ As a business group that operates with the highest standards of governance, we are subject to and fully compliant with anti-corruption and anti-bribery laws in India and other countries,” as quoted by Bloomberg.
Representatives from the Justice Department in Brooklyn and Washington declined to comment. Azure did not respond to requests for comment.
Last year, Hindenburg Research accused Adani conglomerate of manipulating its stock price and committing accounting fraud, leading to the investigation. The group has firmly denied these allegations, and its shares have largely recovered from the initial plunge, as the report added.
Despite the scrutiny, the US government has persevered in working with Adani Group entities. Last year, the US International Development Finance Corp. provided $553 million in financing to an Adani unit for a port terminal in Sri Lanka’s capital, aiming to counter China’s influence in the region, as per the report.
The Adani probe is now at an advanced stage, and the Justice Department can proceed with its investigations without notifying the parties involved. Gautam Adani, his company, and Azure have not been accused of wrongdoing by the Justice Department, and investigations do not always result in prosecutions, as per the report.
The Foreign Corrupt Practices Act (FCPA) allows US prosecutors to pursue foreign corruption allegations if certain links to American investors or markets exist. Adani Group does not trade in the US, but it has American investors.
As the investigation unfolds, it highlighted the geopolitical implications surrounding the Adani Group, deeply intertwined with the Indian economy and closely watched by the White House as a potential ally against China’s influence, the report added.
Adani Group’s stocks and bonds saw a massive selloff early last year after U.S. short-seller Hindenburg Research issued a report that alleged improper governance practices, stock manipulation and the use of tax havens by the group. These allegations have been denied by the Indian company.
